Assumptions made during production
The labour resource output is constant throughout the production process.
When calculating the cost we assume that the amount of work put in by the human resource is consistent with the projections.
That the workers never miss work during the project.
We assume that the workers are never faced by such challenges like sickness that would make them miss a day of work.
That workers work a standard 8 hours daily with no overtime.
We have not created a provision for working overtime or given any rates for calculating overtime wages.
That there is no labour turnover.
The process only uses the workforce present at the start of production up to the end. I.e. there is no exit or recruitment
That there is no other factor affecting production other than the size of the workforce.
That the production engineer will be involved in every step of production
